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a16z Reveals What TradFi Really Wants From Blockchain


a16z Reveals What TradFi Really Wants From Blockchain

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A16z finds TradFi institutions are adopting blockchain pragmatically to lower operating costs, speed settlement, expand distribution and tighten customer relationships, using the technology as a business tool rather than embracing decentralization. This implies growing institutional crypto adoption that will favor permissioned or centralized deployments over DeFi-native decentralization, with impacts on market adoption, CEX/DEX dynamics and security models.

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TradFi institutions are adopting blockchain to improve their existing operations, not because they have embraced decentralization, venture capital firm a16z said in its latest report.

The technology helps lower operating costs, speed up settlement, expand distribution, and “tighten its grip” on customer relationships, which makes it a practical business tool rather than an ideological shift.

Read the article at CryptoPotato

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